Pressure to expedite land tax revisions jeopardizes planning predictability
In a recent statement, André Berghegger, CEO of the German Association of Towns and Municipalities, expressed concerns about the delay in the resolution of the real estate tax reform issue. The reform, which was implemented on January 1, 2025, aims to replace the previous system, deemed unconstitutional by the German Federal Constitutional Court.
The delay is attributed to the lack of property valuation results from the tax offices. Over 36 million properties still need to be valued by the financial authorities for the real estate tax reform. This enormous amount of work required for property valuations remains a concern, as it may affect the timely collection of taxes by cities and municipalities.
Cities and municipalities aim to keep the total revenue from real estate tax stable. However, an increase in real estate tax, if it occurs, would be due to the poor financial situation of cities and municipalities. This increase could potentially impact property owners, as they may face higher tax obligations without a clear understanding of future rates.
Berghegger emphasized that property owners still do not have clear information about the future height of their real estate tax. This lack of clarity may affect property owners' understanding of their future tax obligations, potentially causing uncertainty and anxiety.
The "Redaktionsnetzwerk Deutschland" reported on Mr. Berghegger's concerns about the delayed implementation of the real estate tax reform. The Association has issued a warning about the potential consequences of the delay, including the impact on property owners and the timely collection of taxes by municipalities.
No clear trend for future real estate tax rates has been identified yet. The situation regarding the real estate tax reform has not improved, according to Berghegger. He also noted that the delay may still affect property owners' understanding of their future tax obligations and the timely collection of taxes by cities and municipalities.
As the municipalities finalize the tax assessments based on the new valuation model, property owners will be informed about their specific tax obligations. The exact timing may vary depending on the efficiency of local administrations in processing the data and issuing tax assessments.
In conclusion, the delay in the real estate tax reform in Germany is causing uncertainty for property owners and municipalities. The Association of Towns and Municipalities has urged for swift action to ensure a smooth implementation of the reform and to provide clarity for property owners about their future tax obligations.
- The delay in the real estate tax reform, initially planned for January 1, 2025, is causing concern in the business sector, particularly among cities and municipalities, as it may impact the stability of their general-news and finance.
- Uncertainty regarding the future height of real estate taxes, due to the delay in the reform, is not only affecting cities and municipalities financially, but also stirring political debates about property owners' obligations and their understanding of future tax rates.
